FTSE 100 higher as banking, energy stocks rise

The blue-chip FTSE 100 index rose 0.58%, while the midcap FTSE 250 added 0.90%

Britain’s FTSE 100 closed higher on Tuesday, aided by ‌gains in banking and energy stocks, while shares of Mitie Group soared after outsourcer OCS Group’s £3.1 billion buyout deal.

The blue-chip FTSE 100 index rose 0.58%, while the midcap FTSE 250 added 0.90%.

Shares ​of British oil majors BP and Shell gained more than 1% ​as crude prices reached a five-week high after tensions between ⁠Iran and U.S. and a threatened naval blockade of Saudi Arabia ​by Yemen’s Houthis sparked concerns about supply disruption.

Precious metal miners led sectoral gains, ​up 4.2%, tracking a rise in gold prices, as Middle East tensions persisted.

Mitie climbed 38.8% to the top of the midcap index after the British outsourcer agreed to be acquired by rival ​OCS Group International in a deal valued at around £3.1 billion ($4.17 billion).

Investors sifted ​through a latest batch of corporate earnings for signs of how the Middle East war ‌is ⁠affecting companies.

Compass Group shares dropped 1.6% even as the catering giant reported a third-quarter organic revenue growth of 7.1%.

IQE shares soared 30.4% after the UK semiconductor wafer maker raised its full-year revenue growth forecast.

Britain’s jobs market appears to have stabilised at weak levels, ​with official data showing ​annual wage ⁠growth and unemployment steady in the three months to May and payrolled employment little changed in June.

The increase was ​in line with forecasts in a Reuters poll of economists ​and did ⁠little to change expectations that the Bank of England will keep interest rates on hold.